Daily Wrap

US equity indexes closed significantly lower, sp -31pts @ 2012 (intra low 1989). The two leaders - Trans/R2K, settled lower by -2.1% and -2.4% respectively. The VIX was naturally on the rise (intra high 23.36), but with equities seeing a spike into the close, settling +13.7% @ 20.70.


sp'daily5

Trans, daily

VIX'daily3

Summary

Unquestionably, a daily for the equity bears. Indeed, it was the third consecutive net daily decline for all US indexes. The VIX certainly confirmed the equity weakness, with an important daily close above the key 20 threshold.

A move to sp'1950 looks extremely probable this week, and that would likely equate to VIX 26/27.

The bigger weekly/monthly charts are offering downside to sp'1920/00 in the immediate term. Were that the case, VIX would be in the low 30s.
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*At 8pm EST I will publish the outlook for 2016, along with YOUR predictions :)